By Elsie Kamsiyochi
The United States has granted additional export approvals allowing several Chinese companies, including a subsidiary of telecommunications equipment maker ZTE, to purchase some of the world’s most advanced artificial intelligence chips from Nvidia and AMD, according to documents and sources familiar with the matter. The move marks another significant development in the ongoing technology competition between Washington and Beijing, as both countries continue to balance national security concerns with commercial interests.
Among the newly approved companies is ZTE Kangxun Telecom, a subsidiary of Chinese telecom giant ZTE. Also receiving approval is server manufacturer Maginfra, while Zhuhai Hengqin Yunxiang Zhisheng Network Technology, a subsidiary of cloud computing company Kingsoft, has been authorized to use advanced AI chips from AMD that compete with Nvidia’s H200 processors.
The approvals broaden the list of Chinese companies that have received permission to import high-performance AI hardware from the United States. Until now, publicly known recipients were largely limited to major Chinese technology firms and large electronics distributors. The latest approvals suggest that Washington’s licensing process is gradually expanding to include a wider range of businesses involved in artificial intelligence, cloud computing, telecommunications, and enterprise data services.
Nvidia’s H200 chip has become one of the most sought-after AI processors in the world. Designed to train and operate large language models and other sophisticated AI applications, the chip delivers significantly improved memory capacity and computing performance over earlier generations. It is widely used in building advanced AI systems that power chatbots, image generation, scientific research, autonomous technologies, and large-scale cloud computing platforms.
Because of its capabilities, the H200 has become a central focus of U.S. export controls aimed at limiting China’s access to cutting-edge computing technology. Since 2022, Washington has steadily tightened restrictions on advanced semiconductor exports, arguing that such technology could enhance China’s military modernization and strengthen sensitive research programs.
Earlier this year, Reuters reported that approximately ten Chinese companies—including Alibaba, Tencent, ByteDance, and JD.com—had also received U.S. approval to purchase Nvidia’s H200 chips. However, shipments remained delayed as transactions continued to undergo regulatory reviews in both the United States and China. Those reviews highlighted the complicated nature of cross-border technology trade, where approvals from one government do not automatically guarantee immediate deliveries.
Recent developments indicate that progress may finally be occurring. According to people familiar with the matter, several Chinese cloud service providers have informed business partners and customers that they expect to gain access to H200 chips in the near future, suggesting that import approvals within China are moving forward.
Neither ZTE, Maginfra, Kingsoft, Nvidia, AMD, nor China’s Ministry of Commerce immediately commented on the latest approvals. The U.S. Bureau of Industry and Security, the Commerce Department agency responsible for administering export controls, also declined to provide immediate comment.
The approvals reflect the Trump administration’s evolving approach toward AI chip exports. While maintaining strict controls over the most advanced semiconductor technologies, the administration has permitted exports of certain high-performance chips like the H200 under carefully reviewed licensing arrangements. Supporters argue that allowing controlled sales helps preserve American leadership in artificial intelligence while generating billions of dollars in revenue for U.S. chipmakers and maintaining their competitive position in one of the world’s largest technology markets.
Nvidia has consistently advocated for continued access to Chinese customers, emphasizing that China remains one of its most important markets for AI hardware. Restricting sales too aggressively, the company has argued, could encourage Chinese firms to accelerate the development of domestic alternatives and reduce long-term demand for American technology.
China, meanwhile, has continued investing heavily in homegrown semiconductor manufacturing and AI chip development as part of its broader effort to reduce dependence on foreign technology. Although export licenses from the United States represent an important opportunity for Chinese companies to access leading AI processors, uncertainty remains over how quickly those chips will reach customers amid ongoing regulatory reviews and geopolitical tensions.
The latest approvals illustrate the delicate balance both governments are attempting to maintain. While national security concerns continue to shape export policy, economic realities and the growing importance of artificial intelligence are driving carefully managed cooperation in selected areas.
As global demand for AI computing power continues to surge, decisions surrounding advanced semiconductor exports are expected to remain a defining issue in the broader U.S.-China technology rivalry.
Source Reuters
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